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Wednesday, October 24th, 2012
12:30pm (EST)
The bulls are trying to recover from Tuesday’s drubbing and have done a good job of holding positive territory today. However, there has been a little red and the gains have been marginal as the bears still look hungry. Tech has been the weakest index but there are some bright spots.
Shares of Facebook (FB, $23.43, up $3.93) are getting a 20% lift today after posting better-than-expected revenue results. The company matched earnings per share of $0.11 but revenue came in at $1.26 billion versus estimates for $1.22 billion and Zuckerberg said all the right things on the conference call which we were impressed with. Advertising revenue came in at $1.1 billion with $150 million coming from mobile, or roughly 15%. With the smartphone market continuing to grow, this was a good show for Facebook.
We were hoping shares would come down to the mid-teens after the earnings announcement and where we are considering adding the stock to our Weekly Wrap covered call portfolio. However, given today’s bounce, we will have to wait or buy it at current levels. We don’t like to chase so we will wait but it was a solid quarter by Facebook.
We closed out another winning trade for the Weekly Wrap earlier this week to run our 2012 Track record to 25-0. Last year, we were 16-0 for the newsletter. We are riding a perfect record and a 41-trade win streak for the publication and in the last 2 years, you could have turned $10,000 into $18,000 trading our recommendations. This is an 80% return playing options in a “safer” way.
As far as our Daily newsletter, we have action to take on 2 more trades that are currently showing gains of 71% and 79% and we had another trade stopped out for an 80% win. On that note, we need to roll as we update our current trades inside the Members Area. We said this week would be a busy and fast-paced so let’s go ring the register!
As we head to press, the Dow is up 10 points to 13,110 while the S&P is lower by a half-point to 1,412. The Nasdaq is off 5 points to 2,985.
We will be back in the morning with more earnings news and possible new recommendations.
Posted in Covered Calls, Earnings, Weekly Wrap | Comments Off
Sunday, October 21st, 2012
11:30pm (EST)
1. Market Summary
2. Aegerion Pharmaceuticals (AEGR) Needs a Pipeline
3. Earnings
4. Weekly Wrap Portfolio Update
5. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section.)
= = = = = = = = = = = = = = =
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are doing well for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 24-0. Together, we are 136-48 (75% win rate) for both newsletters and we doubt you will find a hotter options trading service.
Our list of winners for 2012 include+475% on AXP,+462% on ARNA,+292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125% on MSFT just to name a few.
Our Weekly Wrap Covered Call Portfolio is now 24-0 for 2012. We were 16-0 in 2011. Some of our sweet returns include +55% on SZYM, +27% on CLNE, +38% on VVUS, +19% on MGM, 18% on DNDN, and 20% on DAR. Remember, if you can make 20% on just 5 trades, you will double your money.
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off
Thursday, August 30th, 2012
9:00am (EST)
The market followed it’s normal pattern of trading in a tight range with both the bulls and bears doing more talking than fighting on the lightest volume day of the year. The good news is we only have another day of this before we could start to see some movement.
The Dow added 4 points to end at 13,107 after trading in a 63-point range. The high was 13,144 while the low came in at 13,081 for the blue-chips.
The S&P 500 was up a point and closed back above 1,410 by a half-point. The index tested 1,413.95 to the high side and 1,406.57 on the low end.
The Nasdaq advanced 4 points to finish at 3,081. Tech traded down to 3,067 shortly after the open but rebounded to kiss a high of 3,087.
Pandora Media (P, $9.97, up $0.12) held double-digits in extended trading last night after beating earnings expectations although the bottom line was another loss. The company reported a loss of $5.4 million, or 3 cents a share, for the quarter compared to last year’s same period rink ink of $3.2 million, or 4 cents a share.
Revenues were up over 50% to $101 million which is what kept shares from tanking to single-digits. The suit-and-ties were expecting a little over $100 million in sales and ad revenue. Another impressive figure was the number of listeners which has now grown to nearly 55 million
We have featured Pandora in our Weekly Wrap and recommended a covered call option earlier this year that made our subscribers 9% in 3 months.
A 9% return may not sound like a “big” gain but annualized it would net 36%. Considering savings and CD’s pay 1%-2%, we like our chances with covered calls which are a safer way to play options providing you own the stock as well.
We have put together another good week following yesterday’s closing of two “Half” positions which are currently showing gains of 236% and 58%. Our plan is working accordingly as we said we would like the portfolio to be light heading into the Black Hole on Friday.
We may also have more Trade Alerts and a possible New Trade for you this morning so be on the lookout for possible updates between 10am-11am.
As we head to press, futures are showing a lower open and look like so: Dow (-40); S&P 500 (-5); Nasdaq (-10). Subscribers, check the Members Area for the updates.
Tags: covered call option trading, incredible option, option alerts, option trading, option trading services, options momentum trading, options on stock, options trading, options trading service, stock option trade, trade in options, weekly options trading
Posted in Company Commentary, Covered Calls, Earnings, IPOs | Comments Off
Tuesday, July 31st, 2012
12:50pm (EST)
As expected, the market has traded in a tight range today and has pushed red and green as Wall Street continues to wait on word from the Fed and the ECB. It has been a tension filled 48 hours as the debate rages on what they will or won’t do but it is no use in talking about it as the deadlines are almost here. Instead, we will talk stock and options which is what we do best.
RealD (RLD, $9.76, down $2.83) is down 22% today and has touched a low of $9.25. We have said this stock was going to single-digits and in late May we got aggressive with the June 10 puts when shares were near $12 which burned us.
We should have went with the August 10 puts (RLD120818P00010000, $0.60, up $0.40) which are up 200% and have traded to a high of 80 cents or the August 12.50 puts (RLD12081800012500, $2.60, up $1.75) which are also up 200% and have traded to $3.10.
The company reported earnings of $3 million, or 5 cents a share, versus $9.5 million, or $0.17 a share, in the year ago quarter. Revenue came in at just over $68 million. Wall Street was looking for profits of $0.15 a share on sales north of $70 million.
Dendreon (DNDN, $4.96, down $1.23) is getting dumped after reporting a wider-than-expected loss of 61 cents a share versus the suit-and-ties forecast for a loss of 59 cents a share. Revenue came in at $80 million versus estimates for $86 million as sales of Provenge continue to slip. The prostate cancer drug is facing increased competition and Dendreon said it would shutdown one of its Provenge manufacturing plants in an effort to cut costs. Shares of Dendreon are at their lowest levels since 2009 and are at pre-level prices before Provenge was even approved. This was one of our favorite stocks from a few years ago and it made our subscribers a lot of money after soaring from $4 to over $50. We said back in 2011 when shares fell below $40 to stay away from Dendreon because shares would get a lot cheaper.
Although they look “attractive” at these levels, the stock could fall to $3 or $2 which is maybe when you want to take a flyer. Shares would basically be a long-term call option with the chance of a takeover somewhere down the road. Dendreon needs a new CEO and a better sales team because the drug is worth something but someone is looking at this company as its market cap continues to shrink.
As we head to press, the market has trading lower with Tech turning negative along with the rest of the indexes. The Dow is down 35 points to 13,038 while the S&P 500 is off 4 points to 1,381. The Nasdaq is lower by a point to 2,944.
FaceBook (FB, $21.77, down $1.38) has made another fresh low of $21.61 and appears headed to $18. The S&P Volatility Index ($VIX, 18.62, up 0.59) is up 3% and is creeping its way to 20…
We do have a NEW TRADE for you today and it is a carry-over trade on a current position that is showing a nice double-digit return. We are still holding out for triple-digits but we may have to go out to the September option chain to get our gains.
Subscribers, check the Members Area for the updates and please use limit prices to get the best fills.
Tags: covered call trading, dndn, RLD, VIX
Posted in Covered Calls, Earnings, Market Analysis, VIX | Comments Off
Tuesday, June 12th, 2012
9:00am (EST)
We had a feeling the bears weren’t done and we said Spain’s bailout, “loan”, relief aid, or whatever you want to call it, looked questionable to us before Monday’s opening surge on Wall Street. It was a classic “buy the rumor, sell the news” session as the market started off strong but folded like a cheap lawn chair as the suit-and-ties doubted the latest efforts to fix Europe’s debt crisis.
The overseas markets also had strong opening gains of 2+% but faded as well and ended mixed after bond yields rose. Germany’s stock market rose just 0.2% while France saw it stock exchange end 0.3% lower which was a clue the U.S. indexes would not hold their gains.
The yield on Spanish 10-year bonds jumped 0.3% to nearly 6.5% while Italy’s 10-year bonds jumped the same amount to 5.84%. Anything over 6% on a 10-year bond means the market is losing faith on the country’s finances. If Vegas had odds on the next country to ask for a bailout, we would put $50 on Italy as the fifth country that will get a bailout.
The Dow dropped 143 points, or 1.1%, to finish at 12,411 on Monday. The blue-chips reached a peak of 12,650 but fell to a low of 12,398 which was a 250-point swing. The bulls were trying to clear and hold the 12,600 level but the losses have the bears eyeing support at 12,350-12,200 again.
The S&P 500 fell 17 points, or 1.3%, to settle at 1,308. The index kissed a high of 1,335 but never had the momentum to challenge 1,350 after futures were cut in half before the bell. The low was 1,307 and the close opens the door for a test back below 1,300 to 1,275. If the latter support level fails, selling pressure will pick up steam and 1,257 becomes the make-or-break point which is where the S&P started the year at.
The Nasdaq declined 49 points, or 1.7%, to close at 2,809. Tech tested 2,882 at the open but fell below the 2,850 level shortly afterwards. The low for the session was 2,806 and support at 2,800 is looking weak. A close below 2,750 would not be good.
The Russell 2000 got hammered for 18 points, or 2.4%, to end at 751. The small-caps tested 776 on the high which was short of brick wall resistance at 780 while the low came in at 750. A break below 740 would be super bearish.
Meanwhile, the S&P Volatility Index (VIX, $23.56, up $2.33) surged 11% and closed back above 22.50. The VIX tested a low of 19.63 on the open and we said a test to 20 could come on further upside action by the bulls. In the same breath, we also said the bears would be targeting a close back above 22.50. We also mentioned in our Weekly Wrap if the VIX pops above 25, the market could be setting up for a violent pullback.
Solazyme (SZYM, $12.10, up $0.99) bucked the trend and broke resistance after announcing its plans with Bunge (BG, $58.34, down $0.97) to build a sugar/oil plant in Brazil was still on track. The two companies are building a facility to convert sugar to oil capable of producing 100,000 metric tons.
The chart from our weekend homework showed a major move was coming as shares surged 9% on Monday to close above $12. More importantly, Solazyme was able to clear both its 50-day and 200-day MA’s.
As far as the option pits, these are the types of more that can make near-term call options triple-digit winners. Many investors don’t know that just a 5% move in a stock can produce a 100+% move in the right option.
Shares of Solazyme opened at $12.10 on Monday and reached a high of $12.55. The July 12.50 call options (SZYM120721C00012500, $0.45, up $0.25) opened at 25 cents and surged 125% on the news.
The June 10 calls (SZYM120616C00010000, $2.20, up $1.10) opened at $1.05 and there was some decent buying despite the fact they expire this Friday. We have been bullish on this stock for quite some time and it is a current recommendation for our Weekly Wrap covered call portfolio.
While the market remains choppy, there are still good option trades out there on stocks with momentum. Solazyme remains a very interesting long-term “Buy”.
As we head to press, futures are showing a higher open and look like this: Dow (+49); S&P 500 (+3); Nasdaq (+8).
Tags: BG, Solazyme joint venture, SZYM, SZYM call options
Posted in Covered Calls, Hot Stocks, Market Analysis, Market Commentary | Comments Off
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MomentumOptionsTrading.com Weekly Wrap for 10/21/12
Sunday, October 21st, 2012
11:30pm (EST)
1. Market Summary
2. Aegerion Pharmaceuticals (AEGR) Needs a Pipeline
3. Earnings
4. Weekly Wrap Portfolio Update
5. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section.)
= = = = = = = = = = = = = = =
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are doing well for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 24-0. Together, we are 136-48 (75% win rate) for both newsletters and we doubt you will find a hotter options trading service.
Our list of winners for 2012 include+475% on AXP,+462% on ARNA,+292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125% on MSFT just to name a few.
Our Weekly Wrap Covered Call Portfolio is now 24-0 for 2012. We were 16-0 in 2011. Some of our sweet returns include +55% on SZYM, +27% on CLNE, +38% on VVUS, +19% on MGM, 18% on DNDN, and 20% on DAR. Remember, if you can make 20% on just 5 trades, you will double your money.
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off